GO! with Microsoft Excel 2016 Comprehensive First Edition Chapter 8 Using the Data Analysis, Solver, and Scenario Features, and Building Complex Formulas If this PowerPoint presentation contains mathematical equations, you may need to check that your computer has the following installed: 1) MathType Plugin 2) Math Player (free versions available) 3) NVDA Reader (free versions available) GO! with Microsoft Excel 2016 Comprehensive, First Edition Excel – Chapter 8 Copyright © 2017 Pearson Education, Inc. All Rights Reserved.

Learning Objectives Calculate a Moving Average Project Income and Expenses Determine a Break-Even Point Use Solver Create Scenarios Use Logical Functions Create Complex Formulas Organizations forecast future results based on current trends. You can use Excel tools to analyze data, project values, determine the moving average of sales, project sales based on an expected growth rate, and determine a break-even point. In addition, Excel’s Solver and Scenario tools are useful to search for solutions to problems.

Calculate a Moving Average (1 of 5) Excel offers Data Analysis tools, which range from basic to very sophisticated, to help you project future results based on past performance. One of the basic tools is a moving average—a sequence of averages computed from parts of a data series. In a chart, a moving average evens out the fluctuations in data, showing a pattern or trend more clearly. On occasion, data in a worksheet may not be arranged as you need it. You can transpose—or switch—the data from rows to columns or vice versa.

Calculate a Moving Average (2 of 5) Add-ins are optional commands and features that are not immediately available; you must first install and/or activate an add-in to use it. This slide shows the first step of adding in the Analysis ToolPak.

Calculate a Moving Average (3 of 5) When the Moving Average dialog box displays, you define the input range, the interval—the number of cells to include in the average—and the output range. The moving average will be a weekly (7 day) average of sales.

Calculate a Moving Average (4 of 5) The moving average displays and a chart is added to the worksheet. Note that the first six cells in column C display an error code because there were not seven numbers available to use in the average.

Calculate a Moving Average (5 of 5) A forecast is a prediction of the future, often based on past performances. To gain a clearer image of a trend—or forecast—you can modify the moving average chart, as shown here. The selected range is changed, the Horizontal Axis and Vertical Axis titles are changed and formatted, and numbers are changed to Currency with 0 decimal places. This is a dual-axis chart.

Project Income and Expenses (1 of 2) This income statement has been built on fixed expenses—expenses that remain the same each month—and variable expenses—expenses that change depending on the amount of sales. The gross profit or loss is shown in row 10.

Determine a Break-Even Point The goal of a business is to make a profit. The point at which a company starts to make a profit is known as the break-even point. A break-even point can be calculated for a product, an office, a division, or an entire company. You can chart the results of the estimated income statement to create a visual image of the income and expenses and the projected break-even point.

Project Income and Expenses (2 of 2) This is the visual results of the break-even analysis with formatting applied.

Use Solver (1 of 7) Solver Excel what-if analysis tool Solver is an add-in Must first install and/or activate to use it Can find an optimal (maximum or minimum) value for a formula in one cell subject to constraints on the values of other formula cells on a worksheet

Use Solver (2 of 7) Objective cell Cell that contains a formula for the results you are trying to determine Decision variables Also referred to as variable cells Cells in which the values will change to achieve desired results Constraint cells Cells that contain values that limit or restrict the outcome

Use Solver (3 of 7) This worksheet sets the basis for the Solver analysis. Six possible schedules are labeled—A through F. Column B lists the consecutive days off for each schedule. The cells for columns E through K indicate a 0 for days off and a 1 for days worked.

Use Solver (4 of 7) Solver is used to determine the minimum payroll expense; that is, the minimum number of servers that can be on duty and still meet expected customer demand. This process involves identifying the objective cell, the decision variable cells, and the constraint cells. Cell C15 displays as an absolute reference in the Set Objective box of the Solver Parameters dialog box.

Use Solver (5 of 7) For this problem, the Add Constraint box requires that only an integer—a whole number—be used, because you cannot assign part of a person as a server. The Limitation constraint requires that the number of servers assigned to each schedule be a positive number—a negative number of servers cannot be assigned. The number must be equal to or greater than zero.

Use Solver (6 of 7) The constraints are displayed here in the Solver Parameters dialog box. With the constraints established, you can solve for, or calculate, the minimum payroll expense.

Use Solver (7 of 7) The decision variables—the cell range C3:C8—displays the number of servers that should be assigned to each Schedule to meet the demand while minimizing payroll. Cell C15—the objective cell—shows the Weekly Payroll Expense as $8,330.00, and the number of servers who will work each schedule displays in cells E10:K10.

Case Scenarios (1 of 3) Scenario Manager What-if analysis tool to compare alternatives Scenario Set of values that Excel saves and can substitute automatically in your worksheet

Case Scenarios (2 of 3) Initially, the Scenario Manager dialog box shows that no scenarios are defined. After clicking the Add button, naming the scenario, and verifying the C3:C8 range was selected and displays as the Changing cells, the current value in each of the decision variable cells displays. The values generated can then be accepted. You can also create a scenario using the Solver Parameters dialog box.

Case Scenarios (3 of 3) Since you can create several scenarios, it is helpful to be able to view a summary of the results of all alternatives. A scenario summary can be generated from the Scenario Summary dialog box. A scenario summary can display in a table, or a Scenario PivotTable report. This slide shows a scenario summary with three options.

Use Logical Functions (1 of 3) Logical functions test for specific conditions SUMIF function Contains a logic text—it will add values in a specified range that meet a certain condition or criteria SUMIFS function Similar to SUMIF, but allows you to specify multiple ranges and multiple criteria to test COUNTIF function Counts all cells that meet specific criteria in a range COUNTIFS function Counts all cells in multiple ranges and multiple criteria

Use Logical Functions (2 of 3) The syntax for the SUMIF function requires two arguments—range and criteria—and an optional argument—sum_range.

Use Logical Functions (3 of 3) The optional arguments in this SUMIFS function display in the ScreenTip. The multiple sets of criteria show in the Formula bar. The results are generated in the highlighted column, column K.

Create Complex Formulas (1 of 4) Use logical functions AND and OR to develop compound logical tests that use up to 255 arguments AND function Returns a result of TRUE if ALL of the conditions are met OR function Returns a value of TRUE if ANY of the conditions are met NOT function Takes only one argument and tests one condition If the condition is true, NOT returns the logical opposite false If the condition is false, then true is returned

Create Complex Formulas (2 of 4) The AND function takes the argument logical1, followed by optional additional logical tests. This AND function performs two logical tests L3<=3 and L3<=5. Both must be true for the function to return TRUE. If either or both tests fail, the function returns the result FALSE.

Create Complex Formulas (3 of 4) You can build complex formulas by using a nested function—a function contained inside another function. The inner, nested function is evaluated first and the result becomes the argument for the outer function. In this example, there are six servers that meet both criteria—and are listed as “Eligible.” Conditional formatting is then added to the range further emphasizing the “Eligible” employees.

Create Complex Formulas (4 of 4) Excel’s AVERAGEIFS function enables you to specify multiple criteria when computing an average. This example offers the average nightly sales for servers working the evening shift who have sales over $2,000.

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